Agreement advances Indonesian LNG project

Inpex will submit a revised plan of development for the integrated Abadi LNG project in Indonesia after signing a heads of agreement with authorities on basic principles. The HOA outlines terms agreed in discussions after completion of a pre-front end engineering and design study conducted by KBR in response to the government’s requirement that the liquefaction plant be built onshore.

Inpex Corp. will submit a revised plan of development for the integrated Abadi LNG project in Indonesia after signing a heads of agreement with authorities on basic principles.

The HOA outlines terms agreed in discussions after completion of a pre-front end engineering and design study conducted by KBR in response to the government’s requirement that the liquefaction plant be built onshore (OGJ Online, May 8, 2018).

The government approved the first development plan for a 2.5 million tonne/year floating liquefaction facility in 2010 but in 2016 stipulated that the plant be built onshore after Inpex proposed to triple capacity based on expansion of reserves at Abadi gas field.

The field is in 400-800 m of water on the 2,503-sq-km Masela block in the Arafura Sea, 150 km offshore Saumlaki, Maluku Province.

The onshore liquefaction plant is to have capacity of 9.5 million tonnes/year.

Inpex Masela, of which Inpex owns 51.93%, holds a 65% interest in the Masela block production-sharing contract and is operator. Shell holds a 35% interest.

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